A judge in California has temporarily halted the enforcement of new gaming regulations proposed by Attorney General Rob Bonta that aimed to restrict blackjack-style games across the state. The court's decision indicates that the state may have overstepped its legal authority.
On Thursday, San Francisco Superior Court Judge Richard Darwin issued a preliminary injunction preventing Bonta and the Bureau of Gambling Control from implementing the new regulations, which were set to go into effect on June 1. This ruling allows cardrooms to continue their operations without interruption for the time being.
Judge Darwin ruled that the California Gaming Association (CGA) is likely to prevail in its claim that the Bureau exceeded its jurisdiction when it adopted these regulations. The new rules, which took effect on April 1, would have significantly impacted the availability of blackjack-style games in cardrooms and imposed stricter regulations on third-party proposition player services (TPPPS).
During the proceedings, Judge Darwin expressed skepticism regarding the Bureau's authority to establish statewide regulations for blackjack-style games. He remarked that the framework of the Gambling Control Act is not particularly well-structured and noted that the Bureau's claimed rulemaking power does not appear to be supported by the Act itself.
Sharon O’Grady, representing the California Department of Justice, contended that the Bureau has the authority to define what constitutes a legal controlled game in the state. However, attorney Jeremy Kreisberg, representing the CGA, argued that the California Gambling Control Commission, not the Bureau, was granted the power to set statewide gaming standards.
Ultimately, Judge Darwin upheld his initial ruling and issued the injunction, which can remain effective for up to 45 days. A follow-up hearing is scheduled for June 30.
The CGA hailed the ruling as a significant win for cardrooms and the communities that depend on gambling tax revenues. CGA President Kyle Kirkland stated, “Today’s ruling confirms our long-held belief that Attorney General Bonta and the Bureau of Gambling Control overstepped their authority in attempting to modify California's gaming laws.” He emphasized that these regulations were influenced by powerful tribal gaming interests aiming to eliminate competition from California's cardrooms.